Correlation Between Solid Power and Arbor Realty
Can any of the company-specific risk be diversified away by investing in both Solid Power and Arbor Realty at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Solid Power and Arbor Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solid Power and Arbor Realty Trust, you can compare the effects of market volatilities on Solid Power and Arbor Realty and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Solid Power with a short position of Arbor Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solid Power and Arbor Realty.
Diversification Opportunities for Solid Power and Arbor Realty
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Solid and Arbor is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Solid Power and Arbor Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arbor Realty Trust and Solid Power is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Solid Power are associated (or correlated) with Arbor Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arbor Realty Trust has no effect on the direction of Solid Power i.e., Solid Power and Arbor Realty go up and down completely randomly.
Pair Corralation between Solid Power and Arbor Realty
Given the investment horizon of 90 days Solid Power is expected to generate 2.53 times more return on investment than Arbor Realty. However, Solid Power is 2.53 times more volatile than Arbor Realty Trust. It trades about 0.31 of its potential returns per unit of risk. Arbor Realty Trust is currently generating about 0.06 per unit of risk. If you would invest 113.00 in Solid Power on April 18, 2025 and sell it today you would earn a total of 209.00 from holding Solid Power or generate 184.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Solid Power vs. Arbor Realty Trust
Performance |
| Timeline |
| Solid Power |
| Arbor Realty Trust |
Solid Power and Arbor Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solid Power and Arbor Realty
The main advantage of trading using opposite Solid Power and Arbor Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solid Power position performs unexpectedly, Arbor Realty can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Arbor Realty will offset losses from the drop in Arbor Realty's long position.| Solid Power vs. Microvast Holdings | Solid Power vs. Bloom Energy Corp | Solid Power vs. Enovix Corp | Solid Power vs. Plug Power |
| Arbor Realty vs. Ares Commercial Real | Arbor Realty vs. AGNC Investment Corp | Arbor Realty vs. Ares Capital | Arbor Realty vs. Blackstone Mortgage Trust |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |